March 17th, 2017
The Competition Bureau recently confirmed that it has issued a No Action Letter in the proposed acquisition of Canexus Corporation by Chemtrade Logistics Income Fund.
Both Canexus and Chemtrade produce chemicals for the pulp and paper industry.
This is the second time that the Bureau has found that a transaction’s anti-competitive effects would be offset by the efficiencies gained from the transaction, including savings related to transportation costs.
The first time the Competition Act‘s efficiencies exception was used was when the Bureau issued a No Action Letter in relation to Superior Plus Corp.’s proposed acquisition of Canexus. That deal was abandoned by Superior Plus when the U.S. Federal Trade Commission challenged the acquisition.